Demolition continued Monday at the Redwood Park apartments in Kenner, the sprawling apartment complex once home to a large segment of the city's Hispanic population.

But as crews embark on the process of destroying 401 units, the future of the site remains unclear.

"We're exploring all our options," said owner Howie Raymond, adding that it most likely will be a "mixed-use" development, meaning that light commercial uses, such as coffee shops, could be mixed with new apartments.

If the new housing is upscale, that would not be welcome news to some Hispanic community leaders, who say inexpensive housing is desperately needed.

"The thing that concerns us is the issue of affordable housing," said Darlene Kattan, executive director of the Hispanic Chamber of Commerce of Louisiana. She said the Redwood apartments provided a valuable and close-knit community for Hispanics, many Honduran. Many now are living with friends or family or commuting from Gonzales or Baton Rouge, Kattan said.

Many of the apartments being torn down were ruined by Hurricane Katrina. The wind ripped off roofs and smashed windows, splotching the complex's inside with mold and left approximately 1,800 people looking for a new place to live. The state fire marshal deemed the apartments uninhabitable last September, Raymond said.

Zoladz Construction, of Alden, N.Y., started late last week tearing down buildings that had been badly damaged by Katrina. The company has until the end of the year to finish demolishing all 38 buildings at the complex fronting West Esplanade Avenue, Raymond said.

But he hopes they'll finish before that.

"Weather permitting, I think they will," he said.

Some members of the Hispanic community urged the City Council and Raymond months ago to rebuild the apartments as low-income housing.

Dr. Vinicio Madrigal, a Hispanic activist and Kenner doctor, said the government should have done more to help the residents because the apartments were federally subsidized.

When the complex was built, about 36 years ago, the federal government insured the mortgage and gave builders a below-market interest rate in return for charging below-market rents.

It wasn't until a late January public meeting at Kenner City Hall that many residents realized they might be eligible for federal housing vouchers to help with rent, Madrigal said.

"One of the main reasons for government to exist is to provide infrastructure and protection for the less fortunate. They failed miserably this time around."

Kenner officials have previously defended themselves, saying they could not force Raymond to rebuild the complex as a low-income complex because it is on private land.

Kattan said no study has been done about how many Hispanics live in the area now, but a Hispanic Business Resources and Technology Center opened in Kenner post-Katrina is booming.

"The numbers that have come through there have greatly exceeded our expectations," she said.

Raymond said he is still in the planning stages, and has sat down with developers from around the country who are hoping to get involved in the development of the West Esplanade property.

"We're just listening to what different people have to say," he said.

Once plans are determined, he will go to City Hall to get permission from the council and planning and zoning commission to move forward with a development.

"It's going to be a little while before we decide what to do," Raymond said.